Can You Deduct Expenses of Volunteering for Charity?

If you're one of the millions of Americans who perform volunteer work for charity, you might be entitled to deduct your expenses from your income taxes. These deductions are only available for volunteers who itemize their personal deductions—something most taxpayers are unable to do.

When Are Volunteer Expenses Deductible?

To be deductible, volunteer expenses must be:

• unreimbursed by the charity for which the volunteer services are performed
• directly connected with the volunteer services
• incurred only because of the volunteer services, and
• not personal, living, or family expenses.

Example. George Jones spent $500 on car expenses and parking while volunteering for Acme Charities during the year. Acme doesn't reimburse him for this expense. He may deduct $500 as a charitable contribution.

Can I Deduct Travel Expenses When Volunteering?

Travel expenses are one of the most common deductions by volunteers. These include:

• air, rail, and bus transportation
• car expenses where travel is done by car
• taxi fares or other costs of transportation between the airport or station and the hotel
• lodging costs, and
• the cost of meals.

If unreimbursed by the charity, such expenses are deductible if they are necessarily incurred while the volunteer was away from home performing services for the organization. A volunteer can't deduct personal expenses for sightseeing, fishing parties, theater tickets, or nightclubs.

Travel, meals, and lodging, and other expenses for a volunteer's spouse or children are likewise not deductible.

The Trip Must Be Mostly for the Charity's Business

Moreover, the trip must have been mostly for business, not pleasure, or it won't be deductible at all. The IRS says that a volunteer can claim a charitable contribution deduction for travel expenses only if there is "no significant element of personal pleasure, recreation, or vacation in the travel."

This doesn't mean the volunteer can't enjoy the trip, but they must have been on duty in "a genuine and substantial sense" throughout the trip. A volunteer gets no deduction at all if they had only nominal duties or had no duties for significant parts of the trip.

Example. Betty is a troop leader for a tax-exempt youth group and helps take the group on a camping trip. Betty is responsible for overseeing the setup of the camp and for providing adult supervision for other activities during the entire trip. Betty participated in the activities of the group and enjoyed her time with them. She oversaw the breaking of camp and helped transport the group home. Betty can deduct her travel expenses.

Example. Ben works for several hours each morning on an archeological dig sponsored by a nonprofit organization. The rest of the day he is free for recreation and sightseeing. He can't take a charitable contribution deduction for his travel expenses even though he worked very hard during those few hours.

Deducting Car Expenses When Volunteering for a Charity

A volunteer can deduct unreimbursed out-of-pocket expenses, such as the cost of gas and oil, directly related to the use of their car in giving services to a charitable organization. However, volunteers can't deduct general repair and maintenance expenses, depreciation, registration fees, or the costs of tires or insurance.

There are two ways volunteers can keep track of their car expenses. First, they can keep track and document what they actually spend for gas while volunteering. If they don't want to bother keeping track of actual expenses, they can use a standard mileage rate for volunteer-related driving, which is usually significantly lower than the business rate. (See the IRS website for current rates.)

Given the cost of gasoline today, volunteers are usually better off keeping track of actual driving expenses. Whichever method is used, volunteers can deduct parking fees and tolls.

Deducting Expenses of Attending a Convention If Related to a Charity

A volunteer can deduct unreimbursed expenses incurred in attended a convention related to a charity's work. These include transportation expenses and a reasonable amount for meals and lodging while away from home overnight.

Can I Deduct the Cost of a Uniform If I Use It While Volunteering for a Charity?

A volunteer can deduct the cost and upkeep of uniforms that are not suitable for everyday use, and that must be worn while volunteering for a charity. For example, a person who volunteers as a Red Cross nurse's aide at a hospital can deduct the cost of uniforms they must wear.

Can I Deduct Expenses Related to Working With Underprivileged Youth?

A volunteer who works with a charity whose purpose is to reduce juvenile delinquency can deduct amounts they pay to allow underprivileged youths to attend athletic events, movies, or dinners. The youths must be selected by the charity, not the volunteer. The volunteer may not deduct their own expenses incurred in accompanying the young people.

Substantiating Your Volunteer Expenses

The substantiation requirements for deducting unreimbursed volunteer expenses differ according to the amount of the expenses.

Expenses Less than $250

If a volunteer claims a deduction of less than $250, they don't have to get substantiation from the charity. But the volunteer should keep records of their expenses in case they are ever questioned by the IRS.

Expenses of $250 or More

If the claimed expenses are $250 or more, the volunteer must get an acknowledgment from the charity that contains:

• a description of the services provided
• a statement of whether or not the charity provided you any goods or services to reimburse the volunteer for the expenses incurred
• a description and a good faith estimate of the value of any goods or services (other than intangible religious benefits) provided to reimburse the volunteer, or
• a statement that the only benefit the volunteer received was an intangible religious benefit, if that was the case; the acknowledgment doesn't need to describe or estimate the value of an intangible religious benefit.

The volunteer must get the acknowledgment by the earlier of:

• the date their tax return is filed for the year the contribution was made, or
• the due date, including extensions, for filing the return—usually October 15 of the year after the contribution was made.

Getting Help With Tax Deductions

Hiring the right tax professional is important because getting good tax help can translate into more money in your pocket. To learn more about tax deductions and credits, talk to a tax lawyer or other tax adviser.